georgist

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  1. georgist

    The Big Short Thread

    Yes on the "unlimited" loss, however in practice of course it's not going to infinity. Regarding hedging, you could do that.
  2. georgist

    The Big Short Thread

    Margin call is on the person holding a leveraged position. For example if you are selling puts and have sold at $270 then the more it drops the more you are liable for. Your broker would see your amount on deposit is less than the amount owned and call you to deposit the difference. https://www.investopedia.com/terms/m/margincall.asp
  3. Disagree. In a situation of shortage of good homes, rents are based on the ability to pay. This is why prices have gone up whilst rents have been more muted. Prices are based on access to credit / ability to pay the interest (and as rates go lower the landlord can service more debt). Rents are based on ability to pay from wages, which have been flat. Rents (and prices) are absolutely not based on costs + some "fair" profit. If rates go up and landlords presently charging 1500 a month need to get 1800 to cover their costs, if the market cannot bear this price then they will have to lose money. Every month.
  4. The sad thing is, were benefits to be lower, rents would be lower. This is why we have to capture public value for public use: tax land, not labour.
  5. FTSE is looking kinda fooked lately, no? 6 month view somewhat vertiginous: https://finance.yahoo.com/quote/^FTSE With strong USD and CAD both stepping up to rate rises and BoE unable to do anything this is feeling like UK is in a right pickle.
  6. georgist

    Princes of Yen

    I think Werner is a very interesting guy. Would recommend both these videos. Haven't read the book yet, which I imagine has to be far more in depth.
  7. georgist

    Moneyland

    share it with others, the more people that understand that the UK is facilitating money laundering the better. How many lives are cost in helping someone avoid taxes in a developing country, where clean water and hospitals are desperately required?
  8. georgist

    Moneyland

    that film has the perspective that it's run from The City and used as a layer of indirection
  9. georgist

    Moneyland

    http://spiderswebfilm.com/
  10. georgist

    Princes of Yen

    Werner on banks creating money: I should add I really like Princes of Yen. Must read the book.
  11. I don't think he's arguing they are still too high to assist sentiment. He's complaining they are still too high for wages. I agree, but I also agree it's not as bad up north, however places like Manchester, Leeds, York etc are very high. Good post. The 1997 to 2004 rise was significant, therefore retaining 2004 prices is still too high. Life in 1997 was way, way better than 2004.
  12. I agree that the Scottish vote was interesting. My view on this is that Cameron used the press / establishment to scare enough voters to carry the vote. This emboldened him to try the same with Brexit. However the establishment/press were divided on Brexit and he couldn't get the necessary momentum to affect the vote.
  13. I do think it is dawning on them that it's a pyramid scheme. This strategy from Carney shows (yet again) he's out of touch.
  14. Not sure it's gone from strength to strength in real terms, given the fall in GBP.
  15. I agree that many don't care, or even that they actively see the damage and want them to fall. But this is not the case for many. Someone on this forum is for sure not representative of the mainstream. Either way it's a dilemma. And it's interesting that Carney and Chris Giles think this will work. Or perhaps they think it won't work, but they are desperate. Either way: it won't work. Because the UK isn't tenable in its current state. The establishment also faces the same dilemma. They have to make someone bear the loss. The boomer block vote is no longer the gold stamp, as we saw when Corbyn nearly got in. Do the establishment: 1. mild GBP inflation and crash housing => boomers without a pot to piss in 2. big inflation keeping housing up nominally => boomers without a pot to piss in No way to square this circle. It's all about demographics. Please don your flame retardant underwear. It's getting hot.